Category: Zipmex

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Celsius Crypto Exchange Crypto News Zipmex

Zipmex CEO Refuses to Quit Despite A$73 Million Loss

Zipmex co-founder and CEO Marcus Lim is standing firm on his intention to pilot the troubled exchange through a three-month stay of execution from creditors, which it won in the Singapore High Court last week.

Lim vows he will continue to steer the ship unless its new major shareholders tell him to resign, as he works to repay the $US50 million (A$72.8 million) lost through the collapse of crypto lenders Babel Finance and Celsius Network.

‘Key Shareholder’ Sought Lim’s Resignation

Earlier this month, a key shareholder of the exchange had sent Lim a letter requesting his resignation, citing a “loss of confidence between partners” and consequences from the Babel disclosure, according to a Bloomberg story attributed to a source claiming “specialist knowledge” of the situation.

Zipmex halted transfers and withdrawals in July when news broke of the missing millions. Since then the exchange has enabled partial withdrawals of its customers’ Bitcoin and Ether holdings, albeit in minuscule amounts.

Meanwhile, the three-month moratorium providing bankruptcy protection against creditors will hopefully enable the hamstrung exchange to complete a fresh capital raise of between $US50 million and $US80 million. Lim’s intention is to ultimately return funds to investors, all while he oversees a restructuring of the company.

New Shareholders May Seek New Leadership

“This plan includes potentially bringing in new majority shareholders who may want a greater say in management decisions,” Lim told The Australian Financial Review. “Should this happen, my co-founder Akalarp [Yimwilai] and I have made it clear that we will fully cooperate with them and their wishes in the event they may be looking for a management change.”

Zipmex, which employs around 250 people across Singapore, Thailand, Indonesia and Australia, joins two other Singapore-based firms attempting to trade their way out of financial difficulties brought on by the current market downturn. Vauld was also granted a three-month moratorium on its debts by the same court last week, while another crypto lender, Hodlnaut, announced widespread staff layoffs pending “police proceedings” after it too sought protection from creditors.

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Crypto News Cryptocurrency Law Zipmex

Embattled Crypto Lender ‘Hodlnaut’ Applies for Creditor Protection

Hodlnaut has become the second Singapore-based crypto lender to seek a protection order from creditors after filing an application with the Singapore High Court to be placed under judicial management:

Hodlnaut Joins Vauld, Zipmex in Unholy Trinity

Following in the wake of Vauld, which was granted a three-month protection order earlier this month after it too suspended withdrawals without notice in July, Hodlnaut’s application will temporarily safeguard the lender from any legal claims.

Hodlnaut and Vauld join crypto exchange Zipmex, also based in Singapore, in securing temporary creditor protection. Earlier this week, Zipmex successfully won its own three-month moratorium until December 2 to enable it to formulate a funding and restructuring plan.

Hodlnaut hopes that being put under judicial management will allow it too to devise a recovery plan to avoid liquidating customer assets.

What Is ‘Judicial Management’?

Judicial management is a law in Singapore under which financially troubled firms are given the opportunity to rehabilitate themselves. The court appoints a judicial manager who temporarily takes over from the company’s managing director.

The appointment of a judicial manager can take up to a few months. Until the court confirms who that might be, the company may apply to appoint an interim judicial manager to act on a temporary basis in the same capacity. Hodlnaut has nominated Tam Chee Chong, director of the financial consultancy firm Kairos Corporate Advisory, as its interim judicial manager.

With almost four decades’ experience in a corporate finance advisory capacity, Chong has performed the role of judicial manager in a range of companies that have undergone restructuring:

With [Chong’s] experience and track record, we [Hodlnaut] believe he will be able to execute our recovery plan and restructure the business effectively.

Hodlnaut announcement
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Crypto Exchange Crypto News Cryptocurrency Law Zipmex

Zipmex Granted Protection from Creditors for 3 Months

Embattled Asia-Pacific crypto exchange Zipmex has been granted protection from its creditors until December 2, with the Singapore High Court allowing it three months to come up with a funding and restructuring plan:

The moratorium amounts to half the period sought by Morgan Lewis Stamford, lawyers for Zipmex, who had applied for six months’ protection under Singapore’s insolvency law across the exchange’s outlets in Singapore, Thailand, Indonesia and Australia after they abruptly suspended withdrawals last month.

Court Orders Town Hall Meeting for Creditors

According to a statement this week from Zipmex, the court also directed that the exchange convene a town hall-style meeting with its creditor and customer base within one month from the date of the court’s moratorium decision:

[At this meeting], it will minimally be explained what the proceedings in Singapore mean for creditors and customers, the state of proposed investments, the likelihood for the completeness of investors’ proposals and how serious they are, and when customers will be able to access their Z Wallets.

Zipmex statement, August 16

Last week, Zipmex announced its Z Wallet customers would be able to “partially withdraw” some of their Bitcoin and Ether holdings, naming August 11 and 16 as respective dates for releasing “a specific amount” of ether and bitcoin. These amounts turned out to be 0.08 ETH and 0.0045 BTC (about US$150 and US$110, respectively).

Earlier this month, Zipmex said it was “exploring multiple avenues” to secure funding, adding that it was expediting due diligence after signing a memorandum of understanding (MOU) with two investors.

CEO Pressured to Step Down

Meanwhile, Zipmex shareholders and potential investors have reportedly urged CEO Marcus Lim to step down over management decisions they believe led to Zipmex’s liquidity crisis:

Zipmex is not the only Singapore-based firm to secure a moratorium against its creditors. Crypto lender Vauld was granted a three-month protection order by the same court earlier this month after it, too, froze withdrawals without notice in July.

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Crypto Exchange Crypto News Crypto Wallets Zipmex

Zipmex Announces Plans to Release a ‘Specific Amount’ of ETH and BTC

Embattled Asia Pacific exchange Zipmex has announced it will enable its Z Wallet customers to partially withdraw some of their Bitcoin and Ether holdings.

After details of its liquidity crisis emerged last month, Zipmex has named August 11 and 16 as respective dates for releasing “a specific amount” of ether and bitcoin.

Crypto Twitter Questions Zipmex Wording

Predictably, Crypto Twitter was quick to query the vagueness of the Zipmex announcement:

Restructure a Work in Progress

On July 20, Zipmex halted withdrawals from the platform, citing exposure to Babel Finance and Celsius. Following a restructuring plan, the exchange has been working with customers and regulators to ensure funds are returned. Last week, it announced withdrawals for altcoins including Solana (SOL), Cardano (ADA) and Ripple (XRP).

Zipmex operates in four countries – Singapore, Australia, Indonesia and Thailand – and offers both spot trading for cryptocurrencies and interest on deposits.

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Crypto Exchange Crypto News Cryptocurrency Law Zipmex

Crypto Lending Woes Continue as Zipmex Files for ‘Bankruptcy Protection’

Singapore-based multinational crypto exchange Zipmex has revealed it is seeking bankruptcy protection against legal action from creditors.

The embattled company, which froze user withdrawals last month, has submitted moratorium applications relating to its five component entities, including Zipmex Australia:

Zipmex Buys Time ‘For Up to Six Months’

The latest legal move automatically grants Zipmex protection from the continuation or commencement of proceedings by claimants for 30 days, or until after a Singapore court makes a decision on the applications – whichever comes first.

According to Zipmex’s legal team, however, its five applications filed on July 22 seek moratoriums to prohibit legal proceedings against the company for up to six months.

After initially pausing all trading and withdrawals on July 20, Zipmex has since resumed withdrawals from its trade wallet but its popular Z-Wallet remains disabled pending the outcome of discussions with partners.

Zipmex plans to use the time allowed by bankruptcy protection to resolve its liquidity issues, create a restructuring plan, and secure new investments to support its operations going forward. It also claims to have received “formal, registered interest” from potential investors to help shore up its finances.

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Crypto Exchange Crypto News Zipmex

Zipmex Resumes Trade Withdrawals Amid Rescue Talks

Singapore-based crypto exchange Zipmex has resumed withdrawals from its trade wallet but transfers and deposits from its Z-Wallet will continue to be disabled pending the outcome of discussions with two of its partners.

One Party Offers Bailout Terms

In a July 24 Twitter post, Zipmex also revealed that it had received an offer regarding a potential rescue deal. One party had offered bailout terms in a confidential memorandum of understanding (MOU), though Zipmex neither identified the party nor specified whether the offer might be an investment or a buyout proposal:

On July 21, Zipmex halted all customer withdrawals on its platform, citing “financial difficulties” relating to two of its partners. The exchange disclosed a US$48 million exposure to Babel Finance and US$5 million to Celsius, two lenders that have defaulted on loans after accruing crippling losses in the crypto market.

In an official statement, Zipmex said it had already been “in discussion” with Babel Finance when news broke regarding the exchange pausing withdrawals last week.

Zipmex to ‘Write Off’ Celsius Loss

“These discussions are ongoing, and we are evaluating our options based on the outcomes of these negotiations. Our loan to Celsius Network was minimal and we intend to write off this loss against our own balance sheet.”

The statement concluded:

Zipmex is exploring all available channels. This includes capital raises and internal restructuring. For the moment, Zipmex continues to operate the Trade Wallet, NFT platform, and other products as normal.

Zipmex official statement

Native Token Down 40%

Zipmex operates in four countries – Singapore, Australia, Indonesia and Thailand – and offers both spot trading for cryptocurrencies and interest on deposits. The platform’s native token, ZMT, has declined by nearly 40 percent to US$0.343 from US$0.5637 on July 20, according to data from CoinMarketCap.

At the time of writing the exchange had seen nearly US$4 million in trading volume over the previous 24 hours, with almost 60 percent of all trades coming from ZMT.

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Crypto Exchange Crypto News Zipmex

Zipmex Exchange Halts User Withdrawals Citing ‘Circumstances Beyond Our Control’

Southeast Asian digital assets exchange Zipmex has paused customer withdrawals due to “circumstances beyond our control and the resulting financial difficulties of our key business partners”:

Withdrawals ‘Expected to Resume’

With offices in Australia, Indonesia and Thailand, Zipmex describes itself as Asia’s leading cryptocurrency exchange, offering users a long list of crypto products and services. It has extended its maintenance period for Trade Wallet until July 22, the exchange tweeted. Withdrawals are expected to resume afterwards.

Marcus Lim, founder of Zipmex, denied rumours of the firm facing financial turbulence as a result of the crypto market crash and after Coinbase pulled out from its acquisition plan on June 9. He subsequently penned a letter to customers to apprise them of the situation:

Zipmex letter to customers. Source: Zipmex

While Coinbase didn’t acquire the exchange, it poured in an undisclosed amount of strategic financing after the acquisition deal fell through. In August last year, Zipmex separately raised over US$40 million.

Crypto Contagion Spreads

Zipmex is the latest of the numerous crypto-focused companies that have had to suspend withdrawals and other services amid current crypto market turmoil, causing contagion across the industry.

Two weeks ago, Crypto News Australia reported that Singaporean crypto lender Vauld had frozen withdrawals, trading and deposits on its platform.

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Crypto Exchange Education NFTs Zipmex

Zipmex Partners NRL and A-League Teams to ‘Boost Crypto Literacy’

Singapore-based crypto exchange Zipmex has partnered with Australian National Rugby League (NRL) premiership club Penrith Panthers and A-League football club Central Coast Mariners to elevate sports fans’ crypto literacy and expand the exchange’s customer base.

The partnership also includes some smaller community sports clubs – Wyong Rugby League Football Club, also based on the NSW Central Coast, along with Penrith Brothers RLFC and soccer club Penrith Rovers, both based in western Sydney.

Focus on Crypto Education and Giveaways

The partnership will focus on educating the clubs’ fans and members about cryptocurrency by running a series of workshops aimed at crypto newbies.

Zipmex plans to have a regular presence at home games for both the Penrith Panthers and Central Coast Mariners, manning information booths, running giveaways of up to A$500 in BTC, and creating NFTs of high-profile players.

The community-based clubs will see similar types of engagement and education, presumably on a smaller scale.

Zipmex Pushing to Grow its Share of Australian Market

These partnerships form part of Zipmex’s recent push to raise its profile and grow its share of the Australian crypto exchange market. 

The exchange has launched several new products into the Australian market recently, including ZipUp, its high-yield, no lock-in staking program, introduced earlier this month. In March the exchange also partnered with New Venture Wealth to offer Australians the opportunity to hold crypto in their self-managed super funds.

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Crypto Exchange Crypto Staking Cryptocurrencies Insurance Tokens Zipmex

Zipmex’s Crypto Staking Program Offers Australians Up to 10% APY Interest with No Lock-in Period

Zipmex, one of the major established and regulated Australian digital asset exchanges, has recently launched a new product offering in Australia called ZipUp which offers attractive crypto yield returns.

Along with your regular cryptocurrency buying and selling, with Zipmex you can now use a “ZipUp” crypto staking account that gives daily rewards on your crypto. One of the attractive features of this account is having the flexibility of being able to withdraw and deposit any amount, anytime – with no lock-in period.

Zipmex’s Crypto Staking Rewards

Following December’s successful launch of its “ZLaunch” token reward program, Zipmex is now offering users interest rates of up to 10 percent on some digital assets on its ZipUp+ program.

ZipUp+ allows users to enjoy daily crypto bonuses on Bitcoin (BTC), Zipmex Token (ZMT), Ethereum (ETH), US Dollar Coin (USDC), Tether Coin (USDT), and Litecoin (LTC). The rewards are calculated based on the user’s VIP level, and higher rates are on offer for those who lock up their Zipmex Tokens (ZMT).

The full rewards table is outlined below and available on Zipmex’s website.

Zipmex earning schedules by VIP Levels. Source: Zipmex

Given that banks are currently offering little interest on savings accounts, the demand for interest on crypto is high, despite some crypto exchanges dropping interest rates.

What makes Zipmex+ attractive to users in search of a yield is that there is no minimum deposit amount and no lock-in period. Through Zipmex’s easy-to-use app interface, users can withdraw, trade or deposit anytime while enjoying daily crypto rewards.

Read our guide on how to stake your crypto with Zipmex.

How to Participate

Users interested in earning daily rewards on their crypto can sign up and get A$20 free in ZMT and then start staking their crypto to earn daily rewards.

About Zipmex

Zipmex is a trusted AUSTRAC-registered exchange with millions of users across Australia and Asia who enjoy 24/7 customer support, and instant trades, withdrawals and deposits.

With transaction fees as low as 0.1 percent per transaction, the platform is well suited for traders and HODLers alike.

The company is also duly registered with Blockchain Australia and backed by subsidiaries of the Mitsubishi Financial Group, a leading global financial services group and one of the largest banking institutions in Japan.

Read our full review on Zipmex here.

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Press Release Zipmex

Zipmex & New Venture Wealth Lets You Charge Up Your SMSF with Crypto

If you’ve ever considered the benefits of taking control of your superannuation but the difficulty and cost in setting up an SMSF has put you off, now might be a good time to reconsider.

Why now?

All Zipmex customers can now take advantage of our partnership with Melbourne-based New Venture Wealth. In the time it takes you to say “Self-Managed Superannuation Fund”, they’ll get you sorted.

Set-up costs are a flat fee. Annual administration is taken care of.  

Why Consider an SMSF?

Here’s the simple answer: tax benefits.

An SMSF offers huge tax advantages that can help you build and preserve your wealth. Income is taxed at a rate of only 15% and long-term gains are taxed at an effective rate of only 10%. On top of this, income generated from assets in a retirement pension is taxed at 0%. Some other reasons are:

  • SMSF holders are in charge of their own investment decisions and can invest directly in crypto and other assets.
  • An SMSF offers the flexibility to choose your own asset categories and portfolio allocations. This stands in contrast to retail or industry super funds, where your investment decisions are made for you.
  • You can make your SMSF as flexible as you like, allowing for allocation to many alternative asset classes you like or have expertise in: Cryptocurrency. Gold. Precious stones. Art. Whatever floats your boat, or in this case, your portfolio.

So if you’ve got a long-term view on digital assets like Bitcoin and Ethereum, an SMSF could be the perfect investment vehicle for you.

Who are New Venture Wealth and Why Have Zipmex Partnered with Them?

New Venture Wealth specialises in SMSF set-up and audits.

Founders Paul Altis and John Sette offer personalised and affordable service. They’ll assign you your very own SMSF consultant to educate and guide you through the set-up process. No mess, no stress. So you can focus on which crypto you want to add to your SMSF portfolio.

The online application takes five minutes, after which your consultant will help you every step of the way to get your fund application completed and compliant with all ATO regulations and requirements.

Your SMSF specialist will also be there, along with a chartered accountant, to do the yearly audit of your SMSF in compliance with the ATO.

Once your fund is established, you can start your crypto journey by investing in Bitcoin, Ethereum, or any class asset of your choice.

New Venture Wealth is offering all Zipmex customers AU$50 in Bitcoin on sign-up.

Use the code ‘ZIPMEX’ during checkout.

If you set up your SMSF Trading Account with Zipmex and deposit more than AU$10,000 or equivalent, we will also provide a $100 bonus in ZMT! Each increment of AU$10,000 will net you an extra $100 bonus in ZMT up to $500!

Open a Zipmex SMSF Trading here: https://offer.zipmex.com.au/smsf/

If you would like to learn more about self-managed super funds, visit www.newventurewealth.com.au or call New Venture Wealth on 1300 050 939.

Zipmex will also be holding an Educational Webinar on April 5 with Paul and John to talk all things SMSF and crypto. Register your interest below!

https://zipmex.com/au/announcements/the-power-of-crypto-smsf-nwv-zipmex-partnership-live-webinar/